Innovations in Islamic Fintech: a focus on Africa

The role of technology in the financial sector has advanced very rapidly in the past decade. This has brought many old and new players into the market, not only to increase profitability but also tap the potential of the unbanked and improve the lives of people. This chapter discusses the new world of Fintech in Africa, identifies the key Shariah contracts that can be used for it and how Fintech can assist in eradicating poverty in the Shariah compliant way. This chapter provides details on innovation and the need for it while expounding on the meaning and origins of Fintech. The Shariah principles guiding innovation are mentioned. Islamic Fintech, being the current buzzword, has been explained including the key contracts that are being used and can be used. We explain the applicability of Islamic Fintech and what the future entails for it. The world has been challenged to eradicate poverty and this has been taken into account in the chapter by discussing the potential of Fintech to do so and identifying the right Shariah contracts to be applied in using Fintech. Lastly, we describe the responsibilities of stakeholders, particularly governments and the Islamic Fintech companies themselves in successfully creating awareness of and implementing Fintech.